| Organizational chart for organizational change for Ford Motor Company in 2006 according To john Kottler 8-step change model |
| | | Actions taken for improvement |
| A sense of urgency | The Ford Motor Company In 2006 had financial chrisis and New CEO Alan Mulallay had to implement rapid changes to avoid further drop in its stock price that could have led to the company becoming bankrupt. The rapid organizational changes was needed to to reverse the financial losses the company had incurred during the great depression of 2007-8. Changes were aimed at improving the quality and profitability of Ford vehices. |
| Forming Powerful Guiding Coalitions | Ford Motor commpany leader Mulally who was the CEO had meetings with all department heads around the world on weekly bases to discuss changes of improvement in person or via conference call. Each head had to carry out presentation on the current state of operations . they discussed changes that needed to be implemented to improve the profitability. those who were not willing to adopt changes were to be dismissed. |
| Developing a Vision of change and a Strategies | Ford motor Company raised $ 23.6 billion loan by mortgaging Ford's assets to boost its operations. They developed an organizational development plan for revival. |
| Communicating the Vision | The vision of Change was communicated using prominent bar Charts in meetings that were held every week.THis ensured that everyone was informed about the organizational changes adopted. Different colors in charts showed the state of a project or program that was part of the overall change plan. Red signified trouble. Realistic readings of what was going well, or poorly, illustrated the seriousness of the problems. |
| Removing Obstacles | Heads of production units around the world who were not willing to cooperate in fostering organizational change were threatened to dismissal and Lincoln Brand which Luxury brand was halted since its sales was low due to the recession. |
| Creating Short-Term Wins | The Ford Motor Company in 2007 had completely reversed about $ 30 billion losses and and in 2009 reported a profit after financial crisis of almost 5 years down the line. |
| consolidating Gains | The ford Motors started having meetings to discuss on the progress of it activities and changes were discussed to ensure the company remain profitable and competitive in the market. They discussed on imtroduction of Lincoln Brand which had been stopped among other brands. |
| Anchoring Change in the Corporate Culture | The vision of change was incorporated in the organization. The leadership and management style was changed so every employe could buy into development plan of the company , get support in their jobs in general be honoured in the service they offer in the organization. The overal organizational culture, attitudes and values were reshaped to align to the vision. |
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organizationlchangechartweek5assignmentLDR535.xlsx
